Mandatory Financial Reporting Processes and Outcomes

Abstract

In an extension to the mandatory financial reporting literature, we consider compliance and applicability as intermediate stages in the disclosure decision process, and investigate to what extent these measures explain any variance in the quantity of disclosure. We use financial instruments disclosures as our empirical context because of the level of complexity and diversity of the mandatory requirements. We find that neither applicability nor compliance show statistically significant association with disclosure quantity. By contrast we find that a firm's financial instruments management programme is an important determinant of both applicability and quantity. Finally, we demonstrate the economic consequences of applicability, compliance and quantity through their association with audit fees. For companies that use financial instruments management programmes to a greater extent, audit fees are higher. In contrast, the quantity of financial instruments disclosures appears to reduce audit fees.

Compliance with IFRS mandatory disclosure requirements: A structured literature review

“…Studies which explicitly focus on this area are recent, motivated by the implementation of IFRS 7, and cover primarily small and developing markets (specifically Botswana, Jordan, Malawi, Qatar and Ghana). Thus, with the exception of Bamber, McMeeking and Petrovic (2018), who employ a sample of UK firms, research on companies in large and developed stock markets is virtually non-existent. 22 Further, four of these studies examine the factors that affect compliance levels consider a governance related factor and document a positive correlation with compliance.…”

Challenges in financial reporting about biological assets

“…Rad je sastavni deo istraživanja za projekat III-46001 koji finansira Ministarstvo prosvete, nauke i tehnološkog razvoja Republike Srbije 2. docent dr Bojan Savić, Univerzitet u Beogradu, Poljoprivredni fakultet, Nemanjina 6, Zemun, Srbija, E-mail: bsavic@agrif.bg.ac.rs 3 asistent Nataša Obradović, master ekon.…”

Financial Risks of Russian Oil Companies in Conditions of Volatility of Global Oil Prices

“…The degree of assessment confidence reflects the probability of attributing the indicator value to the certain level.The net profit margin on sales characterizes the profitability of the enterprise -the amount of monetary units of net profit which falls on the unit of net income. This indicator has no normative values; the higher the indicator value, the lower the financial risk level(Bamber et al, 2018). The inefficient use of enterprise resources is indicated by the negative value of the indicator at which the company incurs losses.…”